Hey Nitin,
Thanks for looking into my problem. I realized that the evaluation period for my edition had expired and that was the reason it was not letting me start the DB2 instances and the DAS.
I re-intalled a licensed version and now it is working fine.
Guess I am still a doofus when it comes to technicalities

Sorry for taking your time.
Much appreciated.
Below is the excerpt from the DB2diag.log if you are still interested:
**************************************************
2004-12-03-02.44.32.879000 Instance : DB2CTLSV Node:000
PID:1356(db2syscs.exe) TID:788 Appid:none
oper system services licRequestAccess Probe:2
SQL8008N The product "DB2 Enterprise Server Edition" does not
have a valid license key installed and the evaluation period
has expired. Functions specific to this product are not enabled.
*************************************************
Thanks a lot though for looking into my post.
Cheers,
Mayank